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• •. Resolution No. 7-04 A RESOLUTION DECLARING INTENTION TO REIMBURSE EXPENDITURES FROM THE PROCEEDS OF OBLIGATIONS TO BE ISSUED OR CAUSED TO BE ISSUED BY THE TOWN RESOLVED, by the City Council of the Town of Los Altos Hills (the"Town"): WHEREAS, the Town proposes to undertake the project referenced below, to issue or cause to be issued a financing lease or certificates of participation (in either case, the "Obligations") for such project, and to use a portion of the proceeds of such Obligations to reimburse expenditures made for the project prior to the issuance of the Obligations; and WHEREAS, United States Income Tax Regulations section 1.150-2 provides generally that proceeds of tax-exempt obligations are not deemed to be expended when such proceeds are used for reimbursement of expenditures made prior to the date of issuance of such obligations unless certain procedures are followed, one of which is a requirement that (with certain exceptions), prior to the payment of any such expenditure, the issuer declares an intention to reimburse such expenditure; and WHEREAS, it is in the public interest and for the public benefit that the Town declares its official intent to reimburse the expenditures referenced herein. NOW, THEREFORE,it is hereby DECLARED AND ORDERED, as follows: 1. The Town intends to issue the Obligations or cause the Obligations to be issued for the purpose of paying the costs of acquiring and constructing capital improvements consisting of a new Town Hall, to be located at 26379 Fremont Road in the Town(the"Project"). 2. The Town hereby declares that it reasonably expects (i) to pay all or a portion of the costs of the Project prior to the date of issuance of the Obligations, and (ii) to use a portion of the proceeds of the obligations for reimbursement of expenditures for the Project that are paid before the date of issuance of the Obligations. 3. The principal amount of the Obligations is expected to be not in excess of $3,750,000. * * * * *